Pacific Rubiales announces approval of a patent grant for its proprietary STAR technology, in Colombia
TORONTO, Oct. 1, 2013 /PRNewswire/ – Pacific Rubiales Energy Corp. (TSX: PRE;
BVC: PREC; BOVESPA: PREB) is pleased to announce that it has been
granted a patent for its proprietary Synchronized Thermal Additional
Recovery (“STAR“) enhanced oil recovery technology by the Colombian patent authority,
the Superintendencia de Industria y Comercio (“SIC”).
The patent award by the SIC provides the Company with intellectual
property rights to the STAR technology in Colombia for an exclusive 20
year period from the filing date of April 1, 2011, to April 1, 2031.
The patent specifically recognizes: 1) the synchronized system of oil
production using the combustion process, employing in-situ measurement,
monitoring and control of operational conditions in real time and
distance, and 2) the use of a numerical model intelligent
well/subsurface system to monitor and control the progress of the
combustion front and fluids; critical to successful application of
Ronald Pantin, Chief Executive Officer of the Company, commented:
“This patent represents a strong endorsement and provides additional
credibility to STAR by recognizing the importance of this technology
and the value we expect it to bring to both Pacific Rubiales
shareholders and to Colombia.
“Recently we announced that early progress in our Quifa SW field STAR
pilot project had indicated that the technology had already resulted in
a doubling of the recovery factor, in one of the largest producing
heavy oil fields in Colombia. On the back of the independent
certification of these results by three independent engineering firms,
the Company is progressing with plans to expand the STAR pilot to first
commercial application in Quifa SW in 2014.
“Pacific Rubiales is a demonstrated first mover and leader in heavy oil
exploration and production in Colombia. We believe that the success of
STAR has important implications beyond the Quifa SW field because more
than 75% of Colombia’s total oil production growth since 2004 has come
from heavy oil, with the majority of that coming from the Company
operated Rubiales and Quifa fields, currently producing under primary
recovery flow methods only.
“With very large volumes of Original Oil in Place in a number of
discovered fields, heavy oil production is as much the future of the
Colombian oil industry, as it is the future of Pacific Rubiales. The
granting of this patent recognizes the commercial value and future of
STAR, and the Company’s pioneering role in its development.”
Superintendencia de Industria y Comercio (SIC) is a competitiveness
regulatory agency of the Government of Colombia in charge of regulating
fair business practices, promoting competitiveness and acting as the
Colombian patent and registration office.
Pacific Rubiales, a Canadian company and producer of natural gas and
crude oil, owns 100% of Meta Petroleum Corp., which operates the
Rubiales, Piriri and Quifa heavy oil fields in the Llanos Basin, and
100% of Pacific Stratus Energy Colombia Corp., which operates the La
Creciente natural gas field in the northwestern area of Colombia.
Pacific Rubiales has also acquired 100% of PetroMagdalena Energy Corp.,
which owns light oil assets in Colombia, and 100% of C&C Energia Ltd.,
which owns light oil assets in the Llanos Basin. In addition, the
Company has a diversified portfolio of assets beyond Colombia, which
includes producing and exploration assets in Peru, Guatemala, Brazil,
Guyana and Papua New Guinea.
The Company’s common shares trade on the Toronto Stock Exchange and La
Bolsa de Valores de Colombia and as Brazilian Depositary Receipts on
Brazil’s Bolsa de Valores Mercadorias e Futuros under the ticker
symbols PRE, PREC, and PREB, respectively.
Cautionary Note Concerning Forward-Looking Statements
This news release contains forward-looking statements. All statements,
other than statements of historical fact, that address activities,
events or developments that the Company believes, expects or
anticipates will or may occur in the future (including, without
limitation, statements regarding estimates and/or assumptions in
respect of production, revenue, cash flow and costs, reserve and
resource estimates, potential resources and reserves and the Company’s
exploration and development plans and objectives) are forward-looking
statements. These forward-looking statements reflect the current
expectations or beliefs of the Company based on information currently
available to the Company. Forward-looking statements are subject to a
number of risks and uncertainties that may cause the actual results of
the Company to differ materially from those discussed in the
forward-looking statements, and even if such actual results are
realized or substantially realized, there can be no assurance that they
will have the expected consequences to, or effects on, the Company.
Factors that could cause actual results or events to differ materially
from current expectations include, among other things: uncertainty of
estimates of capital and operating costs, production estimates and
estimated economic return; the possibility that actual circumstances
will differ from the estimates and assumptions; failure to establish
estimated resources or reserves; fluctuations in petroleum prices and
currency exchange rates; inflation; changes in equity markets;
political developments in Colombia, Guatemala, Peru, Brazil, Papua New
Guinea and Guyana; changes to regulations affecting the Company’s
activities; uncertainties relating to the availability and costs of
financing needed in the future; the uncertainties involved in
interpreting drilling results and other geological data; and the other
risks disclosed under the heading “Risk Factors” and elsewhere in the
Company’s annual information form dated March 13, 2013 filed on SEDAR
at www.sedar.com. Any forward-looking statement speaks only as of the date on which it
is made and, except as may be required by applicable securities laws,
the Company disclaims any intent or obligation to update any
forward-looking statement, whether as a result of new information,
future events or results or otherwise. Although the Company believes
that the assumptions inherent in the forward-looking statements are
reasonable, forward-looking statements are not guarantees of future
performance and accordingly undue reliance should not be put on such
statements due to the inherent uncertainty therein.
In addition, reported production levels may not be reflective of
sustainable production rates and future production rates may differ
materially from the production rates reflected in this news release due
to, among other factors, difficulties or interruptions encountered
during the production of hydrocarbons.
This news release was prepared in the English language and subsequently
translated into Spanish and Portuguese. In the case of any differences
between the English version and its translated counterparts, the
English document should be treated as the governing version.
SOURCE Pacific Rubiales Energy Corp.